Gold Price Forecast – Gold Markets Rally

Gold markets have rallied a bit during the trading session on Wednesday as we have seen a bit of a recovery. The $1800 level above is significant resistance, especially as it is backed up by the 200 day EMA. However, if we can break above the 200 day EMA, it is very likely that we could go looking towards the top of the gap which is closer to the $1860 level. This is all about the US dollar, and of course rates in America. With that in mind, I like the idea of taking advantage of any type of momentum, but at this point in time we still have a lot of work to do in order to convince buyers to jump in and take advantage.

Gold Price Predictions Video 24.06.21

To the downside, the $1750 level should offer a significant amount of support, as it was previous resistance. Ultimately, the market breaking below that level could open up the possibility of a move down towards the double bottom underneath, which is the gateway to much lower pricing. At that point, gold would enter a tailspin down to the $1500 level.

Currently, a lot of people are concerned about inflation so that does help gold a bit, but at the same time if bond yields rise enough to compensate for that, people will prefer bonds over gold. Beyond that, if the Federal Reserve is correct and inflation is simply “transitory”, that could cause some major issues for gold. At this point, I am not willing to put money to work but I do recognize that filling the gap above could be a nice short-term trade with those who are nimble enough to take advantage of it.

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